Outsourcing is an option for managing internal tasks. Astaffing tool, outsourcing is an arrangement where by an organization contracts with another organization to perform tasks or functions traditionally handled by internal staff.

When an organization decides that more personnel are needed, it must first decide whether to hire more employees, contract workers,or outsource the functions. The focus is on efficiency and cost-effectiveness when deciding whether to outsource. This decision-making process involves internal analysis and evaluation,needs assessment and vendor selection, and implementation and management. » Read more: Outsourcing in the Business environment